S&P 500 Oversold Bounce Is Right on Schedule, but We're Not Out of the Woods Yet

"A fool may earn money, but it takes a wise man to keep it." -- Scottish proverb

NEW YORK (TheStreet) -- We saw a decent bounce today right on schedule after being very oversold and seeing a Doji bar print in the S&P 500 (SPY), Nasdaq (QQQ) and Russell 2000 (IWM) Friday.

I didn't do much today, but we did take a small trade in Priceline.com (PCLN), as it broke my buy point at $1,260. We used weekly calls and bought them for $11 and sold in tranches at $23.60, $31 and $34.

Some nice quick gains for sure -- but the stocks did rest a while before continuing higher by another $15. I should have held some more longer, but I can't be too greedy in this market.

I'm mostly focused on quicker trades with large profit potential at the moment, while major moves are still setting up. I can't promise those types of moves all the time like we saw in Priceline today, but real-time members will get them if I can spot them during the day.

Let's move right to the index chart.

The S&P 500 bounced well after the doji bar Friday. It is too early to tell if it's forming a bear flag or not yet, but the 50-day average at $195.17 will almost assuredly cause some resistance.

This isn't a huge bounce so far, and on low volume, but we don't need a huge move to blow off the oversold reading we just had.  Even some sideways action will do it.

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